Recycled plastics are the type of plastics derived from the recycling of materials. Some of the recycled plastic types are Polyethylene Terephthalate (PET), High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC), Low-density polyethylene (LDPE), Polypropylene (PP), Polystyrene (PS), Polyamides (PA), Acrylonitrile Butadiene Styrene (ABS), etc. Plastic garbage pollutes land, water, and soil which harms the animals on land, and in water. Plastic recycling helps in reducing plastic generation which decreases the pollution and hence does not harm animal life, which is one of the key drivers in the recycled plastics market. The need for recycled plastics as a packaging material is increasing as there is a rising popularity of online shopping for gadgets, consumer goods, cosmetics, etc. Increasing awareness, energy savings, and the negative environmental impact of plastic disposal are said to boost the recycled plastics demand.
In terms of recycled plastics demand by types, Polyethylene Terephthalate (PET) is the most commonly recycled plastic because PET is widely used in food & beverage packaging, carpets, housing materials, bags, etc. The recycling rate of PET is very high as the cost to recycle is comparatively low. In India, A recycled PET house was built by the Plastics For Change Foundation. Polypropylene (PP) is the fastest-growing plastic because it is used in automotive components, packaging, labeling, and medical devices, this segment is expected to boost the recycled plastics demand in the forecast period.
The recycled plastics market is driven by the plastic bottles source, on the back of excessive use of plastic bottles for various purposes like beverages, pharmaceutical purposes, personal care products, medicinal packaging, homecare products, etc. Plastic waste generated from these bottles is very high.
Berry Global Group Inc., ALPLA Group, Plastipak, Ultrepet, Phoenix Technologies, Pepsico, Tridi Oasis, Incom Recycle, Ioniqa Technologies, Suez Group, Veolia, Green Line Polymers, INEOS are some of the players in the recycled plastics market.
Asia Pacific dominates the recycled plastics market because of the rising awareness and the stringent rules that are being introduced towards the ban on plastics. India also announced to forbid the manufacture, import, stocking, distribution, sale, and use of plastic carry bags having a thickness of less than 75 microns from 2022. The landfill taxes in the European countries are very high, therefore dumping can be more expensive than recycling. Europe Union has banned the use of single-use plastics from 2021, which will boost the recycled plastics demand in the forecast period.
The growth of the market is expected to be driven by the increasing use of lightweight plastics in various industries such as building and construction, automobiles, electrical and electronics, and others. The COVID-19 pandemic has led to a surge in demand for various packaging items due to increased online purchases of electronics, personal care products, and personal protective equipment such as shields and face masks. The use of recycled plastics has become more prevalent in the automotive industry, with a growing number of auto parts and components being made with recycled plastics. The electrical and electronics industries have also seen a rise in recycled polymers used in electronic equipment. Companies that have adopted the use of recycled plastics as part of their green business initiatives are now using them in several ICT products, leading to an increase in recycled plastics demand in packaging applications.
Reusing plastics helps in lowering the usage of fossil fuels such as coal, petroleum, natural gas, and others which is increasing the recycled plastics demand.
Recycled plastics help in preserving natural resources which helps in reducing the emission of carbon dioxide.
Recycled plastics also help in decreasing the release of greenhouse gases because they use less oil in the production of new plastic.
The rise in the use of recycled plastics has significantly helped in cutting down on air pollution and in slowing down global warming, these factors are boosting the recycled plastics market.
The recycled plastics market has faced a significant challenge in terms of both quality and usability compared to virgin plastics. Virgin plastics can be used in a variety of applications, including specifically designed packaging, where the plastic directly comes into contact with the food or product. Biodegradable polymers are not a viable option for this use due to safety concerns about contamination from previous use. Additionally, with the growth of shale gas in the US, there is a readily available source of fossil fuels, particularly natural gas, which is a crucial ingredient in the production of virgin polymers. As a result, the stiff competition posed by virgin plastics hinders the growth of recycled plastics.
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